As One Moves Up to Each Higher Level of Managerial

question 138

Multiple Choice

As one moves up to each higher level of managerial responsibility

• A) fewer costs are controllable.
• B) the responsibility for cost incurrence diminishes.
• C) a greater number of costs are controllable.
• D) performance evaluation becomes less important.

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Definitions:

GIC

A Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.

Investment

The allocation of resources, such as time, money, or effort, in hope of generating a future benefit or profit.

Strip Bond

A debt security that has had its main components, namely the coupon and the principal, separated to be sold individually as zero-coupon bonds.

Maturity

The set date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.